EU Ratio Table 2nd August 2017
It looks like the FTSE has got tired of waiting for derivatives to make their mind up and have taken it into their own hands.
Not totally successfully as the high yesterday was 7440.14 this is tantalisingly close to a test of the bottom boundary of the current steadfast zone.
Obviously we can’t rule out 7350-7450 still being the next zone and a sharp pullback might just stimulate derivatives enough to actually achieve it, and so we are again faced with the inflated importance of 7450.
Range: 7250 / (7350) to 7450 or 7450 to 7550
For the DAX two days after the ratio level has dropped it is generally relegated to the “step-up” categorisation but it seems even at this the old R1 level at 12100 had enough influence left.
The low yesterday for the record was 12092 (Monday 12097 & Friday 12098) however we do feel that if it wasn’t for all the other markets this index would not have been so bold.
Although now it seems to have decided it has set the play in motion and with the collapse in the ratios below the zone if it now doesn’t carry it through it is staring into the abyss.
Range: 11950 to 12450